Bretton Woods planners set up a system of rules, institutions and procedures to regulate the international monetary system and created the International Bank for Reconstruction and Development (IBRD) (now one of the five World Bank Group institutions) and the International Monetary Fund (IMF). These organizations were put into service in 1946 after the ratification of the agreement by a sufficient number of countries. As part of the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar. If a country`s monetary value became too low against the dollar, the bank would buy its currency back on the foreign exchange markets. Two world wars had destroyed the country`s main industries, which paid for the import of half of the food and almost all of their raw materials, except coal. The British had no choice but to ask for help. In 1945, the United States agreed on a $3.8 billion loan. In exchange, tired British officials promised to negotiate the deal. Despite its name, the World Bank has not been (and is) not the central bank of the world. At the time of the Bretton Woods agreement, the World Bank was created to lend to European countries devastated by the Second World War.
The World Bank`s focus has shifted to lending to economic development projects in emerging countries. The agreement did not put in place provisions to create international reserves. It expected that a new gold production would suffice. In the event of a structural imbalance, it expected national solutions, such as adjusting monetary value or improving a country`s competitive position by other means. However, the IMF had few resources to promote such national solutions. 730 delegates from the 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, USA, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. Delegates deliberated from July 1 to 22, 1944 and signed the Bretton Woods Agreement on the last day. Through the establishment of a system of rules, institutions and procedures for regulating the international monetary system, these agreements created the IMF and the International Bank for Reconstruction and Development (IBRD), now part of the World Bank Group. The United States, which controlled two-thirds of the world`s gold, insisted that the Bretton Woods system was based on both gold and the U.S. dollar.
Soviet representatives attended the conference, but then refused to ratify the final agreements and claimed that the institutions they had created were “branches of Wall Street.”  These organizations were commissioned in 1945 after the agreement was ratified by a sufficient number of countries. The agreement did not promote the discipline of the Federal Reserve or the U.S. government.